Albert Wilson is the owner in fee of a parcel of improved real estate located at 1 Main Street, Middletown, USA. It is a single-family residence, located in an R-1 (residential 1 family house) zone, and served by city water and sewer. The house was built in 1944.
Robert Brown and Alice Brown, his wife, are entering into a contract to purchase the property. The sale price is $200,000. The Browns will tender $10,000 as down payment upon signing (earnest money) and pay an additional $10,000 within 20 days of contract signing. The couple is seeking a 30-year conventional mortgage of $180,000, at the current rate, which is 5.5%.
The Browns have already sold their house and expect to close on or before December 17, 2005, which is 90 days from the anticipated date of the contract with Mr. Wilson.
Assume that the property Mr. Wilson is selling to Mr. and Mrs. Brown has a rich vein of coal. Mr. Wilson intends to mine the coal for the next three years. Draft a contract clause under which Mr. Wilson may extract coal for 36 months after the date of closing of title. You can refer to the following sources for drafting a contract clause:Library of Clauses, Common Clauses in a Contract, Standard Clauses & Phrases: To Assist in the Writing of Residential Purchase Contracts, and Legal Agreements.
Name your document SUO_LGS2005_W2_A3_LastName_FirstInitial.doc.
On a separate page, cite all sources using the Bluebook format.
|Assignment 3 Grading Criteria||
|Applied the principles of contract in the preparation of an agreement between the parties.||
|Recognized the rights inherent in the ownership of real property.||
|Drafted a contract clause regarding the coal extraction.||
|Used correct spelling, grammar, and professional vocabulary.||
|Cited all sources in the Bluebook format.||
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